Bon-Ton to Boost Private Label
November 7, 2005,
York, Pa. — The Bon-Ton Stores will begin work in spring 2006 on integrating the 142 Northern Department Store Group units it is acquiring from Saks Incorporated, resulting in the establishment of its own private label development team, executives said last week.
The deal will create a 281-store regional department store company with $3.5 billion in sales, giving Bon-Ton leverage with vendors and allowing it to strengthen private label programs, Bud Bergren, president and CEO, said.
Bon-Ton is paying $1.1 billion in cash plus the assumption of approximately $85 million of liabilities, including approximately $35 million in capitalized leases for the NDSG. The transaction includes 31 Carson Pirie Scott stores, 14 Bergner's stores, 10 Boston Store stores, 40 Herberger's stores, and 47 Younkers stores; NDSG's headquarters facilities in Milwaukee; and distribution centers in Rockford, Ill., Naperville, Ill., Green Bay, Wis., and Ankeny, Iowa.
The company plans to retain the various store nameplates of the acquired stores.